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Sweet Natural Trading Co. Announces Closing of Financing

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Toronto, Ontario–(Newsfile Corp. – October 11, 2018) – Sweet Natural Trading Co. Limited (TSXV: NTRL) (formerly, Xylitol Canada Inc. (TSXV: XYL)) (“Sweet Natural“, or the “Company“) is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement of up to 32,000,000 units (the “Units”) of the Company (the “Offering”) resulting in the issuance by the Company of 12,140,000 Units for gross proceeds of $607,000. Each Unit consists of one common share (a “Common Share”) of the Company and one Common Share purchase warrant (each a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share, at a price of $0.075, for a period of 36 months following the closing of the Offering. Each Warrant will also have an accelerated expiry date within 30 days of when the Company provides written notice to the holder thereof that either: (i) the Common Share volume weighted average price on the TSX Venture Exchange for any 10 consecutive trading days has equaled or exceeded $0.22; or (ii) the Company closes a subsequent private placement of Common Shares at a price per Common Share exceeding $0.22.

The funds raised pursuant to the Offering will be used by the Company for general working capital purposes including purchasing inventory to satisfy new sales accounts and to pursue the Company’s strategic plan.

Certain insiders of the Corporation subscribed for $100,000 worth of Units in the Offering. Participation by such insiders in the Offering is considered to be a “related party transaction” as defined in Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Offering is exempt from the formal valuation and minority shareholder approval requirements of MI61-101, as neither the fair market value of the securities being issued to insiders, nor the consideration being paid by such insiders, exceeds 25% of the Corporation’s market capitalization.

Early Warning Pursuant to National Instrument 62-103

Prior to closing of the first tranche, Sunir Chandaria (“Mr. Chandaria”) of 182 St. Leonards Avenue, Toronto, Ontario, M4N 1K7, held 4,491,666 Common Shares of the Company indirectly through Chandaria Family Holdings Inc. resulting in holdings equal to approximately 7.20% of the Company’s issued and outstanding Common Shares. On closing of the first tranche, Mr. Chandaria will hold 6,491,666 Common Shares and 2,000,000 Warrants to purchase up to 2,000,000 additional Common Shares. On a fully diluted basis, following closing of this tranche, Mr. Chandaria holds 8,491,666 Common Shares of the Company, or approximately 11.10% of the issued and outstanding shares.

Mr. Chandaria has a long-term view of their investments and may acquire further common shares of the Company either on the open market or through private acquisitions or sell the Common Shares on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

About Sweet Natural Trading Co. Limited

Sweet Natural Trading Co. Limited is a leading natural sweetener company that promotes healthier eating by selling food products that reduce refined, added sugar consumption. With obesity and diabetes reaching unprecedented levels, the Company is focused on making a positive impact in reducing these lifestyle diseases. Sweet Natural Trading Co. products are sold in over 5,000 stores including major retail customers such as Loblaws, Walmart, Whole Foods, Costco, Publix, Sprouts and distributors including UNFI and KeHE.

For more information about Sweet Natural Trading Co. Limited please contact:

Steven Haasz
CEO and a director of Sweet Natural Trading Co. Limited
416.288.1019
shaasz@sweetnaturaltrading.com

Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the Offering and the Company’s strategic growth plan, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are risks detailed from time to time in the filings made by the Company with securities regulators.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. As a result, the Company cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will only update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.